Posts Tagged ‘affiliate marketing’

Common Affiliate Marketing Questions

Saturday, October 10th, 2009

“There are risks and costs to a program of action.  But they are far less than the long-range risks and costs of comfortable inaction.”
-John F. Kennedy

Being an affiliate manger is a tough job, no doubt about it.   However, the benefits far outweigh the risks.  To be a great affiliate manager you’ll face many challenges; however, challenges are mitigated and often eliminated with knowledge, preparation, and the right software.  Let’s start by addressing some of the most common questions affiliate managers have.

Question #1:  Is affiliate marketing right for my business?

Affiliate marketing is one of the most powerful and effective means of gaining new customers, regardless of your product or service.  Affiliate marketing exposes your business to new customers and can get you out of a marketing rut.  Additionally, when you initiate an affiliate marketing campaign, you’re in control.  You determine the commission rate you pay and pay only when your affiliates make a sale.  It’s a no-loss operation for you because you only pay when affiliates make sales. 
 
Question #2:  What are the start-up costs?

Starting an affiliate program gives you the choice of handling the operations yourself or having it managed by an affiliate network.  The costs for either choice generally start around a few hundred dollars.  To start an affiliate marketing program in-house, costs include:

Affiliate management software

Affiliate marketing support, including a website that answers affiliate questions and a means for them to contact you if any issues arise

Affiliate marketing materials including banner ads, copy, coupons, and promotional content

An affiliate marketing contract agreement

Tracking software to track cookies, click-throughs, payments, etc…

The ideal software solution…one all-encompassing program such as can be found at MemberSpeed.com rather than a piecemeal approach.  If you choose to hire an affiliate network to handle your program, they generally charge a flat fee or a percentage of what you pay out each month.

Question #3:  How much time will it take out of my workweek?

Most experts agree that it takes about an hour and a half each day to manage an affiliate program.  They also recommend budgeting more time in the first few months of program implementation, approximately two to three hours a day.  Even the most efficient affiliate managers spend about 45 minutes a day managing their affiliate program. 

Professional affiliate managers generally spend an average of 40-80 hours a month dedicated to managing, tracking and promoting your affiliate program.  This time varies depending on the level of automation and the efficiency of the software.

Question #4:  Paying affiliates.  What type of commission works best?

The right commission rate recruits money-motivated affiliates.  According to a survey conducted by AffStat, 80% of affiliate programs use revenue sharing or cost per sale as compensation method, 19% use cost per action, and the remaining 1% use cost per click or some other method. 

The general rule of thumb…set your default commission rate at a rate you can afford to pay, while leaving room for time-limited commission increase offers, promotions, and private offers.  For example, if you can afford to pay 50% of your gross profit margin, pay 25% instead and tier it so that after affiliates reach their sales goal they earn 30%.  Or you can bump it up to 50% during the holidays or during typically low sales times. 

Question #5:  How do I recruit affiliates?

Your customers may be your best affiliates.  After all, they already appreciate and enjoy your products or services.  Start with a simple link on your website.  Here’s a few ways to find quality affiliates:

Social Networking:  Online forums and other social networking sites can be excellent places to meet, greet and connect with like-minded individuals. They’re also a good resource for interested, motivated affiliates qualified to sell your products and services. 

Link up:  Find websites linking to your competitors and approach them about being an affiliate for you.  Likewise, find affiliates using your favorite search engine and contact them about joining your program. 

Affiliate networks/directories:   Join an affiliate network or become listed on an affiliate directory.  This ensures that affiliate marketers searching for new products and services to promote will find you.

Question #6:  What is the best way to communicate with my affiliates?

Email is the general tool of choice, which makes an autoresponder a fantastic tool for basic emails like the welcome email, introducing promotions, coupons, sending links and banner ads, and answering frequently asked questions.   It’s also generally advisable to have an email address, fax number, and telephone number available for when affiliates have questions unanswered by your frequently asked questions web page – or when they simply want to speak with you. 

Question #7:  How do I motivate affiliates?

Money motivates – no doubt about it.  That being said, affiliates are also motivated by feeling they’re important to you.  This means that when they ask for your time, you give it.  Additionally, promotions, bonuses, prizes, contests, and commission increases all motivate and inspire affiliates.  Constant communication, like sending a weekly or monthly e-zine, reminds affiliates you’re out there and investing in their success. 

These questions present obvious challenges to managing an affiliate program.  The key to success is both to hire great people and to automate as much of the affiliate program as humanly possible.  We’ll take a look at how to do just that in our next article.so be sure to come back soon!

To Your Success!

Warm Regards,
Jeremy Gislason

Follow Jeremy on Twitter at:
http://twitter.com/SureFireWealth

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Make Money With Affiliate Programs The Easy Way

Friday, September 11th, 2009

Want to earn money online – quickly and easily? Then make money with affiliate programs! In most cases, the product owner will handle the product creation, customer support and promotional follow-ups. They may even provide you with a variety of ready-to-use affiliate tools to easily convert visitors into buyers. All you have to do is drive traffic to their site, and the merchant takes care of the rest.

Affiliate Marketing Vs. Other Models

Although it’s easy to make money with affiliate programs, there are other ways to earn online.

Let’s look at the other models, and check out some of the advantages (and disadvantages) of affiliate marketing compared to them.

Google Adsense can make you money every time someone clicks on your ads, even if they don’t buy anything; but you can only earn a few cents per click (in most cases) -unlike in affiliate programs where you could earn several dollars per sale.  You’ll have to get a lot more adsense clicks to earn the same amount as one affiliate sale.

If you choose to sell your own products, it might require a lot of time (or money if you outsource) before you can ever see any return on your investment. Although you can keep 100% of the profits, you have to manage everything – research, product creation, payment processing, and customer support, among others.

But when you decide to make money with affiliate programs, you only need to focus on driving traffic to the merchant’s site, and perhaps building a list if you want to continuously market to that audience for the long-term.

Where To Find Affiliate Products To Promote

There are a number of affiliate program networks where you could search for ideal affiliate products to promote.

The most well known ones include:
- Clickbank
- Commission Junction
- LinkShare
- ShareaSale

If you’re just getting your feet wet, I recommend starting with Clickbank. It’s currently the largest and fastest growing online retailer for digital products. 

If you want to successfully make money with affiliate programs at ClickBank, one good tip is to select a product that has a gravity of 40 to 150. That doesn’t mean any product with a gravity below 40 won’t produce profitable results; but at least you can be reasonably assured that affiliates are making lots of commissions if a product has a gravity within the 40 to 150 range. 

Now why not promote affiliate products with a gravity above 150? Because they have plenty of competition. If you want to earn a sizeable income while not having too much competition, choose a product with a gravity of 40 to 150.

Sites That Help Sell Affiliate Products

You can directly promote your affiliate links to make money with affiliate programs, but you can achieve higher conversions by creating your own sites that review or pre-sell the affiliate products.

Some of them include:

1) Review Sites.

You can do a review site that gives a detailed review of the affiliate product you’re promoting. Review sites are perceived to be authorities on the products they’re reviewing, so they could build up your credibility in that market.

One good tip when reviewing is to appear unbiased. You should not only mention the benefits, but you should also point out any minor flaws as well. Once you do that, the buyers’ defenses will go down and they can focus on the positive aspects of the product.

But remember that the benefits should greatly overcome the minor flaws, or the affiliate program would not be worth promoting.

If you don’t have a host and domain (and you don’t like to shed money before seeing any returns), you may post your review using a blog or content-sharing sites such as squidoo and hubpages.

Search engines give more weight to these content-sharing sites, so you have better chances of ranking higher for keywords you optimized your reviews for. Just remember to give valuable content as well, and you’ll be regarded as a trusted source of information on that niche.

2) Squeeze Pages.

Listbuilding is crucial if you’re planning to establish a relationship with people in your target market and you want to promote long-term to them.

When you collect subscribers through a squeeze page, you can follow up as many times as you want.  That’s the beauty of it.

To capture subscribers, what you can do is create an e-course or short report related to the affiliate product, and use that as a “bribe” to get their email.

If you don’t have the time to create the “bribe” or the budget to outsource the task, you may ask the merchant if he has a rebrandable report you can give away. Or you may ask him permission to use his articles in your promotion. You may compile the articles into an e-course or report, and use that as the incentive to get targeted people to subscribe.

Traffic Strategies To Make Money With Affiliate Programs

1) Adwords.

This is probably the fastest way to test a product’s profitability. However, you should track your spending, as Google Adwords can drain your bank account quickly, especially if your selection of keywords is very general such as “weight loss or internet marketing.” Use keywords that are more targeted; they cost less but can get you better response.

Set a limit on the daily budget for your campaigns if you’re not very familiar with adwords yet.

Check out ads for similar keywords. If you notice the same ads appearing repeatedly for a long time, then that’s an indication it’s making money.

2) Article Marketing.

If you don’t have a budget to start with, you can still make money with affiliate programs – for free. Simply write articles and submit them to article directories, or post them at content sharing sites like squidoo and hubpages. Make sure you optimize your article for your keywords.

3) Forum Marketing.

Another free way to advertise is to post at forums. You could put an invitation to visit your site for more information, or download your free report, in your signature (sig) file. 

Make sure you read the rules and observe if other posters are including their sig files. If you found that they don’t allow sig files, find other forums that do. Don’t waste your time on forums that don’t provide any reciprocal benefits for your efforts.

Once you found some good forums to post to, contribute first. Give advice, establish yourself as a go-to person, and make several helpful posts before you include your sig file.    

To make money with affiliate programs, all you need to have is a basic understanding of the fundamental principles of online marketing and take consistent action on what works. Once you grasp the basics and apply them, making a living from it consistently can be as easy as pie!

To Your Success!

Warm Regards,
Jeremy Gislason
Follow us on Twitter at:
http://twitter.com/SureFireWealth

P.S. For more information how to increase your affiliate commissions and make more money with affiliate marketing go to: AffiliateMarketingInsiderTips.com

P.S.S. Recommended Reading: Operation Affiliate Domination Follow a Strategy to Dominating the Affiliate Arena

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